Interpreting Middle East Economic News and Analyzing Market Trends

Archive for March, 2013

Egypt is being strong-armed into accepting IMF loan

Egypt is being pressured by the US and International Monetary Fund (IMF) into accepting a $4.8 billion loan.  Egypt badly needs financial assistance in order to get its economy going again.  However, the terms of the IMF loan are unacceptable, unrealistic and will do more harm than good.  They also go against the IMF’s praise of Egypt’s economic reforms just before the Arab Spring.  The IMF, however, does not care.  This international organization has a history of always collecting its loans…. and Egypt has some good assets to take in case of default.

   

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Gulf Air can only be saved by government handouts

As Gulf Air struggles to stay relevant, Bahrain Air closes down.  Local unrest and a slowdown of business and tourist traffic to Bahrain is partially to blame, but the leading media in the region are missing the full story.  Here are two recent articles, the first on Bahrain Air and the next on Gulf Air.

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UAE banks go after riskier clients in order to grow loans and credit cards

Stockbroker, who were once classified by banks in the UAE as being risky bets, have now relaxed these rules in order to push loan growth.  Here’s more on the story:

Stockbrokers are being inundated with inquiries from banks trying to sell them credit cards and loans as the recent rally in stocks bolsters confidence in the equities market.

It follows several years of some banks giving brokers a wide berth when selling their products, perceiving them as “high risk” during the global financial crisis.

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